Not such sweet dreams for Eve Sleep investors as losses treble

Investors in Eve Sleep are due for another bad night’s sleep as losses have trebled at the mattress company which has lost more than a fifth of its value since floating four months ago.

The online business, which delivers roll-up foam mattresses to customers in a box, launched itself on London’s junior market in a £140m listing as part of its efforts to raise £32m cash to fund its expansion.

However, the £2.1m of costs associated with the flotation has already eaten into Eve’s bottom line.

Pre-tax losses widened from £3.2m to £9.1m for the six months to the end of June. Meanwhile, losses before interest, tax, depreciation and amortisation also swelled by £3.7m to £6.9m.

Eve blamed the widening losses on the “rapid investment in the business in existing and new territories”. 

Meanwhile sales at the two-year-old company soared from £5.1m in the first six months of 2016 to £11.5m during the same period this year, helped by its expansion in the UK, Germany and France. 

Jas Bagniewski, founder and chief executive, said: “We are a young company with much to prove in the £26bn European sleep market. While the broader furniture market including mattresses has been slow to transition to online purchase, the pace of change is now starting to accelerate.”

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